32.7 How To Report Mutual Fund Distributions

You cannot report mutual fund distributions on Form 1040EZ. Further, you must file Form 1040 and cannot use Form 1040A if you must report an undistributed capital gain on Schedule D or you must report a return of capital distribution on Form 8949 and Schedule D because your basis in your fund shares has been reduced to zero.

Check Table 32-1 above for details on reporting distributions on your return.

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